GBP/USD – 1.2840
Most recent candlesticks pattern : N/A
Trend : Near term up
Tenkan-Sen level : 1.2835
Kijun-Sen level : 1.2833
Ichimoku cloud top : 1.2808
Ichimoku cloud bottom : 1.2804
Original strategy :
Buy at 1.2710, Target: 1.2850, Stop: 1.2675
Position : –
Target : –
Stop : –
New strategy :
Stand aside
Position : –
Target : –
Stop : –
Despite intra-day brief bounce to 1.2864, lack of follow through buying on break of indicated resistance at 1.2859 suggests further sideways trading would be seen and pullback to 1.2805-10 cannot be ruled out, however, reckon Friday’s low at 1.2757 would limit downside and price should stay well above 1.2700-10 (50% Fibonacci retracement of 1.2515-1.2906), bring another rally. Above 1.2865-70 would signal the pullback from 1.2906 has ended, bring retest of this level, break there would extend recent upmove to 1.2920-30 (2 times extension of 1.2365-1.2575 measuring from 1.2500), then 1.2950 but reckon 1.2990-00 (1.236 times projection of 1.2109-1.2616 measuring from 1.2365 and psychological resistance) would hold.
In view of this, would not chase this rise here and would be prudent to buy cable on subsequent pullback as downside should be limited to 1.2710 (50% Fibonacci retracement of 1.2515-1.2906), bring another rise. Below 1.2700 would defer and signal top has been formed, risk correction to 1.2660-65 (61.8% Fibonacci retracement of 1.2515-1.2906) and price should stay well above 1.2608-16 (previous resistance now support).
